81_FR_15634 81 FR 15578 - Pendency of Request for Approval of Alternative Arbitration Procedure; American Arbitration Association

81 FR 15578 - Pendency of Request for Approval of Alternative Arbitration Procedure; American Arbitration Association

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 81, Issue 56 (March 23, 2016)

Page Range15578-15579
FR Document2016-06565

This notice advises interested persons that the Pension Benefit Guaranty Corporation (``PBGC'') has received a request from the American Arbitration Association (``AAA'') for approval of an Alternative Arbitration Procedure under section 4221 of the Employee Retirement Income Security Act of 1974, as amended, and 29 CFR 4221.14. The purpose of this notice is to advise interested persons of the AAA application for approval and solicit their views on it.

Federal Register, Volume 81 Issue 56 (Wednesday, March 23, 2016) 
[Federal Register Volume 81, Number 56 (Wednesday, March 23, 2016)]
[Notices]
[Pages 15578-15579]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06565]


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PENSION BENEFIT GUARANTY CORPORATION


Pendency of Request for Approval of Alternative Arbitration 
Procedure; American Arbitration Association

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of pendency of request.

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SUMMARY: This notice advises interested persons that the Pension 
Benefit Guaranty Corporation (``PBGC'') has received a request from the 
American Arbitration Association (``AAA'') for approval of an 
Alternative Arbitration Procedure under section 4221 of the Employee 
Retirement Income Security Act of 1974, as amended, and 29 CFR 4221.14. 
The purpose of this notice is to advise interested persons of the AAA 
application for approval and solicit their views on it.

DATES: Comments must be received on or before May 23, 2016.

ADDRESSES: Comments may be submitted by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the Web site instructions for submitting comments.
     Email: [email protected].
     Fax: 202-326-4224.
     Mail or Hand Delivery: Regulatory Affairs Group, Office of 
the General Counsel, Pension Benefit Guaranty Corporation, 1200 K 
Street NW., Washington, DC 20005-4026.
    Comments received, including personal information provided, will be 
posted to www.pbgc.gov. Copies of comments and non-confidential 
portions of the request may be obtained by writing to Disclosure 
Division, Office of the General Counsel, Pension Benefit Guaranty 
Corporation, 1200 K Street NW., Washington, DC 20005-4026 or calling 
202-326-4040 during normal business hours. (TTY and TDD users may call 
the Federal relay service toll-free at 1-800-877-8339 and ask to be 
connected to 202-326-4040.)

FOR FURTHER INFORMATION CONTACT: Bruce Perlin ([email protected]), 
202-326-4020, ext. 6818 or Jon Chatalian ([email protected]), ext. 
6757, Office of the Chief Counsel, Suite 340, 1200 K Street NW., 
Washington, DC 20005-4026; (TTY/TDD users may call the Federal relay 
service toll-free at 1-800-877-8339 and ask to be connected to 202-326-
4020.)

SUPPLEMENTARY INFORMATION: 

Background

    The Multiemployer Pension Plan Amendments Act of 1980 (``MPPAA'') 
requires ``any dispute'' between an employer and a multiemployer 
pension plan concerning a withdrawal liability determination to be 
``resolved through arbitration.'' ERISA Sec.  4221(a)(1). Under the 
MPPAA, an employer has 90 days after receipt of notice of a withdrawal 
liability assessment to request review of that assessment. ERISA Sec.  
4219(b)(2)(A). If there remains a dispute about the assessment of 
withdrawal liability, the employer may ``initiate'' arbitration of the 
dispute within a 60-day period after the earlier of (i) the date the 
employer was notified of the plan's response to the employer's request 
for review, or (ii) 120 days after the date that the employer requested 
review of the withdrawal liability. ERISA Sec.  4221(a)(1). If the 
employer fails to timely initiate arbitration, the assessment becomes 
due and owing and the plan sponsor may bring an action in a state or 
federal court to collect the assessment. ERISA Sec.  4221(b).
    The MPPAA directed PBGC to promulgate fair and equitable procedures 
for the conduct of an arbitration under ERISA Sec.  4221. PBGC's 
implementing regulations (29 CFR part 4221) were designed to provide 
procedures to facilitate prompt resolution of disputes by an impartial 
arbitrator, facilitating expeditious resolutions of disputes concerning 
an employer's withdrawal liability. PBGC's default arbitration 
procedures provide rules for the appointment and powers of the 
arbitrator, rules for discovery and hearings, and rules for awards, 
costs, filing and service (Sec. Sec.  4221.4-4221.13).

Scope of Alternative Arbitration Procedures

    In lieu of the default procedures, under 29 CFR 4221.14, an 
arbitration may be conducted in accordance with an alternative 
arbitration procedure approved by the PBGC in accordance with Sec.  
4221.14(c). Certain rules applicable to the default procedures cannot 
be varied in any alternative procedure. 29 CFR 4221.14(b). If an 
arbitration is conducted under a PBGC-approved alternative procedure, 
the alternative procedure governs all aspects of the arbitration, with 
the following exceptions provided in 4221.14(b): The time limits for 
initiating arbitration may not differ from the time limits provided 
4221.3; the arbitrator must be selected after the initiation of 
arbitration; the arbitrator must give the parties an opportunity for 
prehearing discovery that is substantially equivalent to that required 
by Sec.  4221.5(a)(2); copies of the award must be made available to 
the public at least to the extent mandated by Sec.  4221.8(g); and the 
arbitration costs must be allocated in accordance with Sec.  4221.10.

Process for Approval of Alternative Arbitration Procedures

    Under Sec.  4221.14(c), PBGC may approve alternative arbitration 
procedures on its own initiative by publishing an appropriate notice in 
the Federal Register. Additionally, the sponsor of an arbitration 
procedure may request PBGC approval of its procedures by submitting an 
application to the PBGC. The application must include: (1) A copy of 
the procedures for which approval is sought; (2) a description of the 
history, structure and membership of the organization that sponsors the 
procedures; and (3) a description of the reasons why, in the sponsoring 
organization's opinion, the procedures satisfy the criteria for 
approval set forth in this section.

Criteria for Approval of Alternative Procedures

    Under 4221.21(d), PBGC shall approve an application if it 
determines that the proposed procedures will be substantially fair to 
all parties involved in the arbitration of a withdrawal liability 
dispute and that the sponsoring organization is neutral and able to 
carry out its role under the procedures. PBGC may request comments on 
the application by publishing an appropriate notice in the Federal

[[Page 15579]]

Register and notice of PBGC's decision on the application shall be 
published in the Federal Register. Unless the notice of approval 
specifies otherwise, approval will remain effective until revoked by 
the PBGC through a Federal Register notice.

AAA's Alternative Arbitration Rules--1981 & 1986 MPPAR

    In 1985, on its own initiative, PBGC approved the 1981 
Multiemployer Pension Plan Arbitration Rules for Withdrawal Liability 
Disputes (the ``1981 MPPAR''), an alternative arbitration procedure 
sponsored by the International Foundation of Employee Benefit Plans and 
administered by AAA. 50 FR 38046 (Sept. 19, 1985). In 1986, PBGC 
approved AAA's request to use an amended MPPAR (the ``1986 MPPAR'') 
which eliminated certain procedural differences between the 1981 MPPAR 
and PBGC's final arbitration regulation. 51 FR 22585 (June 20, 1986). 
The administrative fee schedule for handling arbitrations in the 1986 
MPPAR was applicable until 2013, when AAA adopted an updated 2013 Fee 
Schedule, creating a revised MPPAR, effective February 1, 2013 (``2013 
MPPAR''). The new Administrative Fee Schedule provides for increases to 
the Initial Filing Fee, establishes two different fee arrangements--the 
Standard and Flexible Fee Schedules, and adds a ``Final Fee'' under 
each schedule and a ``Proceed Fee'' in the flexible schedule context. 
Other than significant changes to the Administrative Fee Schedule, the 
2013 MPPAR are identical to the 1986 MPPAR that PBGC previously 
approved. Under 4221.14, AAA has requested PBGC's approval of the 
updated 2013 Fee Schedule (the ``Application'').
    AAA's Application included the necessary information under 
4221.14(c): A copy of the 2013 Fee Schedule; a description of the 
history, structure and membership of AAA; and a discussion of the 
reasons why, in AAA's opinion, the 2013 Fee Schedule satisfies the 
criteria for PBGC approval under Sec.  4221.14(d).
    A copy of AAA's Application can be found at: http://www.pbgc.gov/prac/pg/other/guidance/multiemployer-notices.html.

Request for Comments

    All interested persons are invited to submit written comments on 
the pending Application request. All comments will be made part of the 
administrative record.

    Issued in Washington, DC, on this 15th day of March, 2016.
W. Thomas Reeder,
Director, Pension Benefit Guaranty Corporation.
[FR Doc. 2016-06565 Filed 3-22-16; 8:45 am]
 BILLING CODE 7709-02-P

15578 Federal Register / Vol. 81, No. 56 / Wednesday, March 23, 2016 / Notices were published in the Federal Register Corporation, 1200 K Street NW., rules for the appointment and powers of on October 21, 2015 (80 FR 63846). Washington, DC 20005–4026. the arbitrator, rules for discovery and Information regarding changes to the Comments received, including hearings, and rules for awards, costs, agenda, whether the meeting has been personal information provided, will be filing and service (§§ 4221.4–4221.13). canceled or rescheduled, and the time posted to www.pbgc.gov. Copies of Scope of Alternative Arbitration allotted to present oral statements can comments and non-confidential Procedures be obtained by contacting the identified portions of the request may be obtained DFO. Moreover, in view of the by writing to Disclosure Division, Office In lieu of the default procedures, possibility that the schedule for ACRS of the General Counsel, Pension Benefit under 29 CFR 4221.14, an arbitration meetings may be adjusted by the Guaranty Corporation, 1200 K Street may be conducted in accordance with Chairman as necessary to facilitate the NW., Washington, DC 20005–4026 or an alternative arbitration procedure conduct of the meeting, persons calling 202–326–4040 during normal approved by the PBGC in accordance planning to attend should check with business hours. (TTY and TDD users with § 4221.14(c). Certain rules the DFO if such rescheduling would may call the Federal relay service toll- applicable to the default procedures result in a major inconvenience. free at 1–800–877–8339 and ask to be cannot be varied in any alternative If attending this meeting, please enter connected to 202–326–4040.) procedure. 29 CFR 4221.14(b). If an through the One White Flint North arbitration is conducted under a PBGC- FOR FURTHER INFORMATION CONTACT: building, 11555 Rockville Pike, approved alternative procedure, the Bruce Perlin (Perlin.Bruce@PBGC.gov), Rockville, MD. After registering with alternative procedure governs all 202–326–4020, ext. 6818 or Jon security, please contact Mr. Theron aspects of the arbitration, with the Chatalian (Chatalian.Jon@PBGC.gov), Brown (240–888–9835) to be escorted to following exceptions provided in ext. 6757, Office of the Chief Counsel, the meeting room. 4221.14(b): The time limits for initiating Suite 340, 1200 K Street NW., arbitration may not differ from the time Dated: March 16, 2016. Washington, DC 20005–4026; (TTY/ limits provided 4221.3; the arbitrator Mike Snodderly, TDD users may call the Federal relay must be selected after the initiation of Acting Chief, Technical Support Branch, service toll-free at 1–800–877–8339 and arbitration; the arbitrator must give the Advisory Committee on Reactor Safeguards. ask to be connected to 202–326–4020.) parties an opportunity for prehearing [FR Doc. 2016–06585 Filed 3–22–16; 8:45 am] SUPPLEMENTARY INFORMATION: discovery that is substantially BILLING CODE 7590–01–P Background equivalent to that required by § 4221.5(a)(2); copies of the award must The Multiemployer Pension Plan be made available to the public at least PENSION BENEFIT GUARANTY Amendments Act of 1980 (‘‘MPPAA’’) to the extent mandated by § 4221.8(g); CORPORATION requires ‘‘any dispute’’ between an and the arbitration costs must be employer and a multiemployer pension allocated in accordance with § 4221.10. Pendency of Request for Approval of plan concerning a withdrawal liability Alternative Arbitration Procedure; determination to be ‘‘resolved through Process for Approval of Alternative American Arbitration Association arbitration.’’ ERISA § 4221(a)(1). Under Arbitration Procedures the MPPAA, an employer has 90 days Under § 4221.14(c), PBGC may AGENCY: Pension Benefit Guaranty after receipt of notice of a withdrawal approve alternative arbitration Corporation. liability assessment to request review of procedures on its own initiative by ACTION: Notice of pendency of request. that assessment. ERISA § 4219(b)(2)(A). publishing an appropriate notice in the If there remains a dispute about the Federal Register. Additionally, the SUMMARY: This notice advises interested assessment of withdrawal liability, the sponsor of an arbitration procedure may persons that the Pension Benefit employer may ‘‘initiate’’ arbitration of request PBGC approval of its procedures Guaranty Corporation (‘‘PBGC’’) has the dispute within a 60-day period after by submitting an application to the received a request from the American the earlier of (i) the date the employer PBGC. The application must include: (1) Arbitration Association (‘‘AAA’’) for was notified of the plan’s response to A copy of the procedures for which approval of an Alternative Arbitration the employer’s request for review, or (ii) approval is sought; (2) a description of Procedure under section 4221 of the 120 days after the date that the the history, structure and membership Employee Retirement Income Security employer requested review of the of the organization that sponsors the Act of 1974, as amended, and 29 CFR withdrawal liability. ERISA § 4221(a)(1). procedures; and (3) a description of the 4221.14. The purpose of this notice is to If the employer fails to timely initiate reasons why, in the sponsoring advise interested persons of the AAA arbitration, the assessment becomes due organization’s opinion, the procedures application for approval and solicit their and owing and the plan sponsor may satisfy the criteria for approval set forth views on it. bring an action in a state or federal court in this section. DATES: Comments must be received on to collect the assessment. ERISA or before May 23, 2016. § 4221(b). Criteria for Approval of Alternative ADDRESSES: Comments may be The MPPAA directed PBGC to Procedures submitted by any of the following promulgate fair and equitable Under 4221.21(d), PBGC shall methods: procedures for the conduct of an approve an application if it determines • Federal eRulemaking Portal: http:// arbitration under ERISA § 4221. PBGC’s that the proposed procedures will be implementing regulations (29 CFR part substantially fair to all parties involved jstallworth on DSK7TPTVN1PROD with NOTICES www.regulations.gov. Follow the Web site instructions for submitting 4221) were designed to provide in the arbitration of a withdrawal comments. procedures to facilitate prompt liability dispute and that the sponsoring • Email: reg.comments@pbgc.gov. resolution of disputes by an impartial organization is neutral and able to carry • Fax: 202–326–4224. arbitrator, facilitating expeditious out its role under the procedures. PBGC • Mail or Hand Delivery: Regulatory resolutions of disputes concerning an may request comments on the Affairs Group, Office of the General employer’s withdrawal liability. PBGC’s application by publishing an Counsel, Pension Benefit Guaranty default arbitration procedures provide appropriate notice in the Federal VerDate Sep<11>2014 15:26 Mar 22, 2016 Jkt 238001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\23MRN1.SGM 23MRN1

Federal Register / Vol. 81, No. 56 / Wednesday, March 23, 2016 / Notices 15579 Register and notice of PBGC’s decision Issued in Washington, DC, on this 15th day SUPPLEMENTARY INFORMATION: The Office on the application shall be published in of March, 2016. of Management and Budget is the Federal Register. Unless the notice W. Thomas Reeder, particularly interested in comments of approval specifies otherwise, Director, Pension Benefit Guaranty that: approval will remain effective until Corporation. 1. Evaluate whether the proposed revoked by the PBGC through a Federal [FR Doc. 2016–06565 Filed 3–22–16; 8:45 am] collection of information is necessary Register notice. BILLING CODE 7709–02–P for the proper performance of functions AAA’s Alternative Arbitration Rules— of the agency, including whether the 1981 & 1986 MPPAR information will have practical utility; OFFICE OF PERSONNEL 2. Evaluate the accuracy of the In 1985, on its own initiative, PBGC MANAGEMENT agency’s estimate of the burden of the approved the 1981 Multiemployer proposed collection of information, Pension Plan Arbitration Rules for Submission for Review: 3206–0194, including the validity of the Withdrawal Liability Disputes (the Annuity Supplement Earnings Report, methodology and assumptions used; ‘‘1981 MPPAR’’), an alternative RI 92–22 arbitration procedure sponsored by the 3. Enhance the quality, utility, and International Foundation of Employee AGENCY: U.S. Office of Personnel clarity of the information to be Benefit Plans and administered by AAA. Management. collected; and 50 FR 38046 (Sept. 19, 1985). In 1986, ACTION: 30-Day notice and request for 4. Minimize the burden of the PBGC approved AAA’s request to use an comments. collection of information on those who amended MPPAR (the ‘‘1986 MPPAR’’) are to respond, including through the SUMMARY: The Retirement Services, which eliminated certain procedural Office of Personnel Management (OPM) use of appropriate automated, differences between the 1981 MPPAR offers the general public and other electronic, mechanical, or other and PBGC’s final arbitration regulation. Federal agencies the opportunity to technological collection techniques or 51 FR 22585 (June 20, 1986). The comment on a revised information other forms of information technology, administrative fee schedule for handling collection request (ICR) 3206–0194, e.g., permitting electronic submissions arbitrations in the 1986 MPPAR was Annuity Supplement Earnings Report, of responses. applicable until 2013, when AAA RI 92–22. As required by the Paperwork RI 92–22, Annuity Supplement adopted an updated 2013 Fee Schedule, Reduction Act of 1995 (Pub. L. 104–13, Earnings Report, is used each year to creating a revised MPPAR, effective 44 U.S.C. chapter 35) as amended by the obtain the earned income of Federal February 1, 2013 (‘‘2013 MPPAR’’). The Clinger-Cohen Act (Pub. L. 104–106), Employees Retirement System (FERS) new Administrative Fee Schedule OPM is soliciting comments for this annuitants receiving an annuity provides for increases to the Initial collection. The information collection supplement. The annuity supplement is Filing Fee, establishes two different fee was previously published in the Federal paid to eligible FERS annuitants who arrangements—the Standard and Register on August 11, 2015 at Volume are not retired on disability and are not Flexible Fee Schedules, and adds a 80 FR 48125 allowing for a 60-day yet age 62. The supplement ‘‘Final Fee’’ under each schedule and a public comment period. No comments approximates the portion of a full career ‘‘Proceed Fee’’ in the flexible schedule were received for this information Social Security benefit earned while context. Other than significant changes collection. The purpose of this notice is under FERS and ends at age 62. Like to the Administrative Fee Schedule, the to allow an additional 30 days for public comments. Social Security benefits, the annuity 2013 MPPAR are identical to the 1986 supplement is subject to an earnings MPPAR that PBGC previously approved. DATES: Comments are encouraged and limitation. Under 4221.14, AAA has requested will be accepted until April 22, 2016. PBGC’s approval of the updated 2013 This process is conducted in accordance Analysis Fee Schedule (the ‘‘Application’’). with 5 CFR 1320.1. Agency: Retirement Operations, AAA’s Application included the ADDRESSES: Interested persons are invited to submit written comments on Retirement Services, Office of Personnel necessary information under 4221.14(c): Management. A copy of the 2013 Fee Schedule; a the proposed information collection to Retirement Services, U.S. Office of Title: Annuity Supplement Earnings description of the history, structure and Personnel Management, 1900 E Street Report. membership of AAA; and a discussion NW., Washington, DC 20415–0001, OMB Number: 3206–0194. of the reasons why, in AAA’s opinion, Attention: Alberta Butler, Room 2347E, the 2013 Fee Schedule satisfies the Frequency: On occasion. or sent via email to criteria for PBGC approval under Affected Public: Individuals or Alberta.Butler@opm.gov. § 4221.14(d). Households. FOR FURTHER INFORMATION CONTACT: A A copy of AAA’s Application can be Number of Respondents: 13,000. copy of this ICR, with applicable found at: http://www.pbgc.gov/prac/pg/ supporting documentation, may be Estimated Time per Respondent: 15 other/guidance/multiemployer- obtained by contacting the Office of minutes. notices.html. Information and Regulatory Affairs, jstallworth on DSK7TPTVN1PROD with NOTICES Office of Management and Budget, 725 Total Burden Hours: 3,250. Request for Comments 17th Street NW., Washington, DC 20503, U.S. Office of Personnel Management. All interested persons are invited to Attention: Desk Officer for the Office of Beth F. Cobert, submit written comments on the Personnel Management or sent via Acting Director. pending Application request. All electronic mail to [FR Doc. 2016–06552 Filed 3–22–16; 8:45 am] comments will be made part of the oira_submission@omb.eop.gov or faxed BILLING CODE 6325–38–P administrative record. to (202) 395–6974. 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Document Created: 2016-03-23 00:04:04
Document Modified: 2016-03-23 00:04:04
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of pendency of request.
DatesComments must be received on or before May 23, 2016.
ContactBruce Perlin ([email protected]), 202-326-4020, ext. 6818 or Jon Chatalian ([email protected]), ext. 6757, Office of the Chief Counsel, Suite 340, 1200 K Street NW., Washington, DC 20005-4026; (TTY/TDD users may call the Federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326- 4020.)
FR Citation81 FR 15578 
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